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Construction firm Merko Ehitus Q3 profit declines on higher fuel, energy costs

By Reuters News


Overview

  • Estonia construction and real estate group's Q3 revenue rose yr/yr, net profit declined

  • Profitability pressured by higher fuel and energy costs, especially in road construction

  • Secured order book stood at EUR 769.1 mln at quarter end


Outlook

  • Merko says public sector contracts dominate order book, driven by defence and infrastructure projects

  • Company notes rising fuel and energy prices are pressuring construction margins

  • Management says consumer confidence has improved but does not expect apartment pre-sale growth to continue


Result Drivers

  • SEGMENT CONTRIBUTION - Co said real estate development and construction services contributed equally to Q3 results

  • APARTMENT DELIVERIES - Co completed and handed over 118 apartments and 18 commercial units in Q3, nearly matching total from first two quarters combined

  • PUBLIC SECTOR DEMAND - Construction services segment driven by public sector contracts, mainly defence and infrastructure projects


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

EUR 118.23 mln

Q3 Net Income

EUR 12.57 mln

Q3 Gross Profit

EUR 15.80 mln

Q3 Operating Income

EUR 11.82 mln

Q3 Pretax Profit

EUR 14.24 mln


Reuters Recommended Reads

  • Nov 4 - Construction firm NYAB Q3 operating profit rises on order intake

  • Nov 4 - Canada's WSP Global Q3 revenue rises 16.6%, beats estimates

  • Nov 4 - Construction firm Tutor Perini's Q3 revenue beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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